“Given that President Obama just promised to cut the deficit in half (as a percentage of GDP) by 2013...”
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Anyone who believes this is nuts. He can destroy the value of the dollar by radical inflation, but it is not going to work. He has no end game of any consequence to Americans who care about our economy, our republic, and the greatness of American fiscal accomplisment through our private sector and free enterprise.
When backed into a corner, politicians will do anything to delay the end game. Obama has made it worse, but I believe we went past the point of no return with the bail out when Bush was President.
That bailout was trying to pump money into a hot air balloon that had a rip all the way down one side. We are continuing to do this. At some point it will be impossible to borrow any more money, and the Fed will shift the printing into high gear. This will continue as long as they can get away with it.
When a government is faced with a debt it cannot pay, it has four choices: borrow, steal, print or default. Our government has been doing the first two for years, and is easing into the third. They will not default, even if we end up with inflation like Germany had before WWII.
He ran on spending. Its as simple as that. The idea of cutting back is not something he can grasp. Next year he will propose cutting the deficit but try to make it a plan that cannot pass so that he can point fingers which is what hes best at.